The report also recommends moving to upfront payments for childcare in Universal Credit. Without this change, low income parents risk being frozen out of work – but this is not the only fatal flaw for Universal Credit and childcare costs. While the cost of childcare has risen steeply over the last decade, support through the benefits system has been frozen and no longer covers average childcare costs. The lowest income families face a £6,000 shortfall each year meaning they may end up worse off working more hours.

The doubling of free childcare for three and four year olds has been popular with parents who are eligible, but many childcare providers have raised concerns about the funding rate. Government must continue to gather evidence on the cost of high quality childcare and make sure that funding rates match this.